UPDATE 2-Eric Daniels joins financial adviser StormHarbour

By Alex Chambers

LONDON, Jan 25 (IFR) - Eric Daniels, the former group chief executive of Lloyds Banking Group, is joining StormHarbour as principal and senior adviser with immediate effect, the firm said on Wednesday.

Daniels, who retired from Lloyds a year ago, has the highest profile yet of any of the professionals that have joined the independent boutique investment bank, which was formed early in 2009.

"Eric's extensive industry insight, distinguished track record, proven leadership qualities and broad network of relationships within and outside the financial services sector are invaluable," said Antonio Cacorino, managing principal and one of the co-founders of StormHarbour.

Based in StormHarbour's London office, Daniels will be a powerful calling card for the firm as it attempts to ramp up a business based on helping its mostly financial institution group (FIG) client base readjust after the credit crunch.

"Having been around the circuit, I've evolved businesses through the growth cycle. I'll be able to help signal where we need to head," said Daniels.

StormHarbour has four business lines: capital markets, sales and trading, advisory/solution and alternative asset management.

"In many ways it's part of the re-launch. I always felt that if we wanted to go to the next step, we had to bring in high-calibre people -- different types of people to give us intellectual capital," said Cacorino.

In September, StormHarbour hired well-known FIG banker, Amir Hoveyda as a managing principal.

StormHarbour aims to broker asset sales from financial institutions which need to deleverage. These institions have in-house execution and distribution capability, but are unwilling to be identified as sellers.

"Eric brings a lot of things. He's been a CEO of banks in good and troubled times across various economic cycles," Cacorino said.

After Lloyds purchased HBOS, Daniels worked for three years restructuring its balance sheet and also intensively managing its capital and liquidity.

"I have spent three years doing that, so hopefully some of those lessons will be immediately applicable."